Wednesday, November 4, 2009

The WSJ reports that China will soon begin construction on the Shwe Project -- a pipeline that will carry natural gas from Kumming to the new port of Kyaukphyu in Myanmar via Mandalay. The purpose is to carry natural gas from the rich gas fields off Myanmar's coast. One interesting fact: The junta will obtain $1 billion a year in revenue for thirty years from the pipeline. This new source of revenue is likely to further diminish the effect of Western sanctions on the regime.

All this raises an important question: In the future, where will the junta be able to put its money?